making news on this friday morning. >> refusal, then rage. egypt's president says he is not leaving. and the crowds react with outrage. today's protests could be the biggest yet. we're live in cairo. sleeper cells. is al qaeda's lethal arm already in the u.s.? the growing threat of homegrown terror. and does the donald have his eyes on the white house? good morning. protesters in egypt are calling this a day of martyrs. thousands of demonstrators, perhaps the largest crowds so

far, are supposed to march in remembrance of those who died in the cause. >> they are also calling on the military to take a stand against president mubarak. we begin our coverage with emily schmidt. >> reporter: it's day 18 of protests in cairo. people are gathered in tahrir square for what they vow will be their biggest gathering yet. and there's news that military leaders have held an important meeting about all that's unfolding. but for protesters, it's like day one. the first day after they thought they had forced their president to step down. for that reason, much of thursday, there was joy and relief. >> the dream became true. and whatever we've been fighting for since the 25th of january has been realized. >> reporter: the crowds gathered, waiting for president mubarak to resign in a public address. they were stunned by what he said. hosni mubarak told them, though he would transfer 1078d powers

to his newly-appointed vice president, he would remain in office until september. he said, to ensure stability. the angry crowd began to chant, leave, leave. even when vice president suleiman told them, go back to your homes. >> not enough. not enough. not enough. >> go out. go out. >> reporter: president obama issued a written statement saying, we urge the egyptian government to move swiftly to explain the changes. and to spell out in clear and unambiguous language the step-by-step process that will lead to democracy. and that white house statement did not mention president mubarak by name. it continued, though, saying the egyptian people made it clear there's no going back to the way things were. vinita and rob? >> emily schmidt in washington this morning. thank you. after yesterday's developments what is happening on the ground right now? aaron katersky joins us live from cairo. aaron, what are you seeing? >> reporter: good morning.

we're on the road to the part of cairo where the presidential palace is located. where president mubarak has been under heavy guard with members of his family, where they heard the speech that enraged people here. on the way, we're seeing empty streets. people are praying at friday prayers. but there's been calls for 21 egyptians to come to the streets. and we're waiting to see how the army responds to the protests. >> it seems the military is almost posturing itself in a coup. will the military turn against mubarak in all of this? >> reporter: that's one of the questions. we're not sure if the army and president mubarak are on the same page. the supreme military council, like our joint chiefs of staff. they convened another meeting today. they said they would issue a statement shortly. we're still waiting for that. we're waiting to see how the army will respond. but right now, as we're trying to make our way to the presidential palace, we're stopped at a checkpoint.

there's a soldier standing by, checking cars. the military is in the streets, monitoring activity today. >> aside from that, in terms of crowd control, we had heard reports that some of the conv t convicted felons would be on the streets and that would encourage people to go home. any truth of that now from what you're hearing? >> reporter: it's hard to know the truth of the rumors. but this place has been arrive with humors and speculation and paranoia and nervousness over the past 24 hours. but today, the demonstrators say they will be reinvigorated with what they heard out of the mouth of their president last night. not satisfied with his defiance. they were thinking this was their moment. they had finally done it. and now, vinita and rob, they say they have more work to do. >> aaron katersky, on what will likely be another extraordinary day in cairo. thanks for that report. we're also gauging reaction across the middle east. our team of reporters will have

the very latest, coming up later today on "good morning america." some stark warnings from the nation's top intelligence officials about terrorist sleeper cremes. at a capitol hill hearing, fbi director robert muller said said operatives may be in the u.s. not to mention, an increasing state of radicalization of extremists right here at home over the past two years. >> we're seeing concerning signs of networking among what had previously been, again, independently-minded homegrown extremists. >> he also said homegrown terrorists lacked sophistications and that many plots have been failed or foiled. cyber attacks were also addressed in that hearing. the next pearl harbor could be a cyber attack. adding that u.s. computer systems are under constant threat. he also claimed that hackers could paralyze the u.s. with

malicious computer activity. political surprise from arizona senator, jon kyl. he is stepping down at the end of the his term next year. kyl has served on capitol hill for more than 24 years. kyl will become the fifth senator who has announced plans to 1step down. this winter has been one for the record books. we're recovering from eight big storms. it plunged to 31 below zero in northern oklahoma yesterday, an all-time low for that state. forecasters say a much-needed thaw is right around the corner. >> winter is not quite over yet. but the pattern we're looking at may be the end of winter. we're likely to still have snow and ice on occasion in march. >> by next week, it's expected to climb to the upper 70s in oklahoma. and it is, in fact, a 100-degree difference in just 1 week. >> wow. amazing. now, for this morning's weather from around the nation.

scattered snowshowers around fargo, the twin cities, chicago and detroit. showers and thunderstorms for the coastal carolinas and much of florida. rain and mountain snow in seattle and the northern cascades. and frost and freeze warnings across texas and louisiana. >> new orleans gets up to 47. dallas, 50. 35 here in new york. 29 in boston. warming up in the middle of the country, with highs in the 30s, from minneapolis to kansas city. 40s from boise to albuquerque. and when we come back on this friday morning, mortgage rates on the rise. what it means for the housing market. plus, nfl contract talks break down. so, how possible is a season without football? and is the donald ready to move from trump tower to pennsylvania avenue?

your chance of getting a record-low mortgage rate appears to be over. the average rate for a 30-year loan rose above 5% this week for the first time since last april. those fast-raising rates could present a new challenge to the housing market, which, of course, is already lagging behind other parts of the u.s. economy. today, president obama presents congress with three options for the future of fannie mae and freddie mac. the proposals would reduce the government's role in the mortgage market by scaling back or shutting down the companies. bailing them out has cost taxpayers over $150 billion. overseas markets are mixed

to end the week. markets in japan were closed for a holiday. hong kong's hang seng rose 0.5%. in london, the ftse opened lower. the dow fell ten points yesterday. the nasdaq ticked up one point. blockbuster is expected to put up the forsale sign soon. the movie chain could not reach a deal to exit bankruptcy protection. it could sell for $300 million. lines for verizon's iphone were not as long as expected on thursday. many customers appear to have skipped the store in favor of internet presales. analysts think the sales will top 1 million iphones by sunday. a new stamp marking the 100th anniversary of ronald reagan's birth has been unveiled in his hometown. crowds gathered to get a look. the stamp depicts mr. reagan during his second term as president at his california ranch. >> as you can see there, it is the forever stamp. if you buy this one, you can use it from here on out, and it will

always work. coming up on this friday morning, we will update the situation in egypt. then, another deadly explosion, bringing attention to the network of gas lines under most american neighborhoods. and passionate lawmakers, at it again. ♪ good morning ♪ good morning [ male announcer ] there are sixteen fresh-picked oranges squeezed into each carton of tropicana pure premium and absolutely no space for added sugar,

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- i love you. - i love you too. and more. if you replace 3 tablespoons of sugar a day with splenda® you'll save 100 calories a day. that could help you lose up to 10 pounds in a year. that's how splenda® is sweet...and more. it was a dangerous ride for drivers in oklahoma city. firefighters were called in yesterday to knock down giant icicles dangling over a major interstate. they formed when a water main broke and temperatures dipped to 5 below zero. now, for a look at your morning road conditions. wet on the klein no coast. and on i-95, from daytona beach to miami. and on i-75, through michigan. rainy on i-5 a massive march fm square to the presidential

palace, a distance of about ten miles. president mubarak has turned over powers to his vice president. but he himself refuses to step down. another deadly natural gas explosion has brought new attention to a danger lurking under homes across the country. the latest blast ripped through allentown, pennsylvania, killing five people. hundreds of people were forced to run for their lives. here's david kerley. >> reporter: just before bedtime in this former steel town, a massive explosion and a gas-fed inferno. >> i was reading a book in the living room. and it felt like a giant kicked the house. like, it all shook. >> reporter: daylight this morning reveals what looks like a war zone. the house where the natural gas exploded, nothing more than a crater. it was the home of william and beatrice hall, a couple in their 70s. they were killed. and next door, a 4-month-old boy, a 16-year-old and one of their parents also killed. mayor ed pawlowski took us to the scene. this is the house that it actually started in.

it's gone. >> yes, it's gone. >> reporter: this is just the latest explosion. three weeks ago in philadelphia, this blast killed one. and last year in california, eight were killed in san bruno. last year, there was a spike in the number of deaths involving pipeline explosions. and watchdog groups don't believe the federal government is doing enough to safeguard us from these aging pipelines. there are nearly 2.5 million miles of pipes delivering natural gas to our homes. >> are we inspecting enough? no. are we putting the money into this? giving the attention? the answer is no. >> reporter: in that california explosion, it turns out there were problems with the pipe. the welds, according to experts, were flawed. on tuesday, the day before the explosion here in allentown, the utility inspected the area and no leak was detected. it was a cast iron pipe installed in 1928 which fed this explosion. and many wonder if enough is being done to prevent these disasters. david kerley, abc news, allentown, pennsylvania.

some new details are emerging this morning about the woman at the center of that scandal that led to the resignation of congressman chris lee. the 34-year-old single mother said she held on to the shirtless picture of the new york republican for weeks, before sharing it with gossip website, gawker. a friend of the woman's said she posted the craigslist ad as a joke, to see what kind of men would send pictures. donald trump seems to be pondering a run for the white house. he delivered a rousing speech at a conservative conference in washington, which is considered the kickoff for the race for the gop nomination. trump called himself pro-life, that he's against gun control. and he wants to see the new health care law repealed. he'll decide whether to run by june. tensions boiled over in a venezuelan legislature. and fists began to fly among lawmakers. government officials were taking questions from a podium when the pushing and shoving started. the security guards separated the fighters. >> capitol hill looked tame, for

once. talks aimed at reaching a new nfl labor contract have broken down. the league and the players union didn't bother going to the table yesterday, for what would be a second-straight day of talks. they have until march 3rd to reach a new deal. if they don't, it's all but expected the owners will lock the players out. and barry bonds is facing just five felony charges instead of 11. that's after federal prosecutors revised their indictment of the home run king for a third time. it stems from bonds' testimony that he never knowingly took steroids. his trial is set to start next month. the cleveland cavaliers are still trying to break their 26-game losing streak tonight at home against the l.a. clippers. we get the highlights from last night's high-profile and historic matchup, now, from espn news. >> good morning. cole wright here with your espn news update. let's head to boston. causeway street was the place for all the action. lakers and celtics, with ray

allen. one point away from tying reggie miller's all-time record. in the first, ray, from three. what would you expect? that would tie the record. and marv albert. >> here's allen with a deep three. yes. three-points. and that is the nba record. >> ray hugs reggie miller. hugs his mom. let's see this one, one more time. he's the all-time leader. third quarter, now, lakers down two. here comes kobe. driving, laying it in. the lakers would tie the game at 54-53. later in the third, with a one-point differential. bryant drives. that gives l.a. the four-point lead. under a minute to go in the third. lakes show up by three.

pau gasol misses the floater. there's lamar odom, with one problem. he gets his head stuck on pau's tooth. odom is a gamer, though. he was treated and then right back in the mix. fourth quarter. under five to go. lakers up, 82-79. bryant got a fadeaway in his arsenal. we all know that. and later on, the drive in the lane. they end up with a nine-point lead, as the lakers win, 92-86. bryant had 22 points, ray allen had 20, as he set history. that's it for us. back to you in new york. >> well done, ray allen. coming up next, the stories we'll be following today. stay with us. i have what science calls the "nightly stuffy nose thing": i can't breathe... so i can't sleep... and the next day i pay for it. i tried decongestants... i tossed & turned... i even vaporized! and then i fought back: with new drug-free breathe right advanced. these nasal strips instantly opened my nose,

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now, a look ahead to the stories we'll be watching on this friday. organizers in egypt have called for a ten-mile march, from freedom square to the presidential palace. now that president mubarak has refused to step aside. perhaps the largest crowds yet are expected today. president obama is keeping a close eye on the unfolding situation in egypt, after issuing a strong statement last night, questioning mubarak's refusal to step down. it is day two of the conservative political action conference, or c-pac in washington. among the featured speakers, mitt romney. the meeting is considered the unofficial beginning for the race for the republican nomination. proposals for the future of

mortgage finance giants fannie mae and freddie mac will be presented to congress. the obama administration has presented three plans that will reduce or eliminate the government's role in the mortgage market. and hundreds of high-profile musicians and singers begin to arrive in l.a. today, ahead of sunday's grammy awards ceremony. one more thing to watch. >> could be a big year for eminem, experts say. coming up later on "good morning america" today, some big box stores are offering to buy back your outdated electronics gear. it sounds like a good deal. but our becky worley says it may not add up to a bargain. >> you may have seen target and best buy are offering programs. they started to pop up around the holidays. we said in the tease, it's hard. you're paying a percentage of what you actually purchased. >> exactly. for some of you, your local news is next. >> for everyone else, the late-night comics on this very busy week in news. stay with us.tion. this is mary... who has a million things to pick up each month

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well, we are wrapping up a very big week in news the chaos in egypt, to the super bowl and lindsay lohan. >> and the events of the past several days have provided plenty of fodder for the late-night comics who had mercy on no one.

>> congratulations to the green bay packers. they are the super bowl champions. yeah. or as christina aguilera, champ bowl packers something gleaming. i'm not sure. >> the economic professor who helped craft president obama's health care plan, is going to explain that in a comic book. in a related story, president bush has come out in favor of president obama's health care plan. >> there is a pattern. look at this other photo we found of him. there he is. last week, he went shopping. picked up some soup. >> yeah. >> and i think we have more. that was the christmas card, right there. and here, he's being sworn in down in washington. that's former speaker of the house, nancy pelosi. >> pe looked good without his shirt on. the only thing missing is the gold chain.

[ laughter ] he should get lindsay lohan to steal him one. >> there's talk that lindsay's short, tight dress was inappropriate for a court appearance yesterday. but in her defense, i'm pretty sure, by now, lindsay knows what's appropriate for court more than we do. >> egyptian president hosni mubarak announced he is not stepping down. yeah. you know what he's going to do instead? he's going to do rehab at home. that seems wrong. i don't think that's going to work. >> this is weird. an egyptian general told thousands of cairo protesters, all your demands will be met today. that's what he told them. yeah. when the crowd shouted democracy, the general responded, almost all your